Ukraine and Russia to not lose their positions on the export grain market – expert

The increase of grain prices, observed on the global stock markets, which was caused by the political instability in Ukraine and worsening of the situation in Russian-Ukrainian relations, stimulated switching of the leading multinational companies to the exports of Russian grains. Also, the significant devaluation of the Russian and Ukrainian national currencies contributed to the situation development, declared Andrei Sizov, Executive Director of SovEcon, on March 5.

The complex of these factors provided substantial support to the exports of Russian grains, which volume in February 2014 totaled over 1.2 mln tonnes, or even reached 1.3 mln tonnes, according to preliminary estimations. In March 2014 the index will even increase, said the expert.

But according to A.Sizov, the reporting growing indices will not be long-term. It should be noted that such reaction of the world market was too sharp. It is rather temporary phenomenon, because during several recent days there was observed some progress in normalization of the Russian-Ukrainian relations, he said.

The expert noted that Ukraine will not likely lose its position as the global exporter of grains. Despite the current situation, both Russia and Ukraine did not sabotage their obligations to supply grains. Therefore, in the nearest future the world market will react at stabilization of the situation, and return to the pre-crisis condition, and grain prices will reduce, summed A.Sizov.